About this Show

Mad Money

News/Business. (2013)

NETWORK

DURATION
01:00:00

RATING

SCANNED IN
San Francisco, CA, USA

SOURCE
Comcast Cable

TUNER
Virtual Ch. 58 (CNBC)

VIDEO CODEC
mpeg2video

AUDIO CODEC
ac3

PIXEL WIDTH
528

PIXEL HEIGHT
480

TOPIC FREQUENCY

Pfizer 18, Jim 11, Cramer 8, Apple 5, New York 4, Westport 4, Us 4, Holly 4, America 3, Florida 3, Barry 3, Bakken 3, Zoetis 3, Netflix 3, Google 3, Officemax 3, Ibm 3, Patrick 2, Sandy 2, Facebook 2,
Borrow a DVD
of this show
  CNBC    Mad Money    News/Business.  (2013)  

    January 23, 2013
    11:00 - 12:00am EST  

11:00pm
plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. nothing. are you stealing our daughter's school supplies and taking them to work? no, i was just looking for my stapler and my... this thing. i save money by using fedex ground and buy my own supplies. that's a great idea. i'm going to go... we got clients in today. [ male announcer ] save on ground shipping at fedex office. omnipotent of opportunity. you know how to mix business... with business. and you...rent from national. because only national lets you choose any car in the aisle. and go.
11:01pm
you can even take a full-size or above. and still pay the mid-size price. i could get used to this. [ male announcer ] yes, you could business pro. yes, you could. go national. go like a pro. >> i'm jim cramer, and welcome to my world. >> you need to get in the game. firms are going to go out of business and he's nuts! they're nuts! they know nothing! i always like to say there's a bull market somewhere. "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money," welcome to cramerica. other people want to make friends, trying to save you a little money. my job is not just to entertain but to educate and put things in perspective. call me at 1-800-743-cnbc. not everything in the market can be explained by cold hard facts. not everything is rational or even cut and dried or it can even be ascertained with close scrutiny. we see that every day, including today where the dow vaulted 67
11:02pm
points, s&p advanced, nasdaq climbed .33%. the stocks of companies that basically have nothing good to say go up anyway. truly miserable quarter on friday. they rallied because there's a consensus with central bankers keeping rates low or taking them lower, the second half of 2013 will be better than the second half of 2012. and that will eventually propel stocks higher. so it's best to get in on the ground floor than wait. we see it in stocks like johnson & johnson, which not only cut guidance yesterday, barely got dinged despite the cut, but was featured on the front page of the "new york times" today in an article entitled "maker aware of 40% failure in hip implant." this stock rallied 16 cents on the news. come on! ♪ hallelujah >> how is that for outrageous? if that hip implant story can't stop their buying, what can? with the internet stocks including the older web plays
11:03pm
like amazon, newer ones like linkedin, which are not constrained by traditional metrics. much more expensive than every other stock out there in the universe. some regard them as accidents waiting to happen. others say i don't care how they're priced. amazon and linkedin are winners, they can be dominant players in the retail world. plenty of ways to make money. so these bulls suspend price to earnings multiples and just say these stocks, thanks to their incredible momentum have become exceptions to the traditional rules of valuation. you saw that with netflix, 13 cent gain instead of loss, propelled the stock up more than a third after the bell. even though netflix is ridiculously expensive on price to earnings multiple basis. and then there's apple. which reported what many considered a disappointing quarter after the close. company delivering a 33 cent earnings beat off $13.48 basis, revenues came in slightly light.
11:04pm
as a result, the stock got pulverized after hours. it made $13 a share, netflix, linkedin and amazon. barely making anything. one goes up more than a third. one goes down gigantically, where's the justice here? where's the love? or the benefit of the doubt? oh, no, with apple it doesn't work that way anymore. apple's the opposite of amazon now in show me mode after rallying like a rocket ship for a long time. amazon's a company where you've been shown and it just keeps showing you. apple's relatively new leadership under tim cook who is not particularly well known or promotional. amazon is run by a guy regarded as the ultimate pioneer, gets the benefit of the doubt at every turn. apple's a total spendthrift, a cheapskate with $137 billion in cash in the bank. amazon is still building out its network and borrowing to do so. unlike just about every other walk of life, we revere amazon because it's spending like mad.
11:05pm
but we scorn apple because a third of the market cap is in cash. we wonder, what's the point here? don't stand there counting it, do something bold. it's not rainy day money anymore when it's that much. it's thermonuclear war money. and if we have thermonuclear war, i don't care how much apple has in their coffers. headlines that initially caused the stock to jump up and not plummet down when it reported. well, first of all, they weren't better. my charitable trust owns some. they weren't. i don't know where they get that stuff. many previously uninvolved people in the world of investing bought this stock on the way up without knowing how the stock market works or how this stock works in particular. market cares, for instance, about gross margin. how much money is left over after the cost of dollar sales. this quarter apple came in at 38.6%, not too shabby. i've been saying the gross margin number would control and, frankly, it had to be stronger than this did and it did control
11:06pm
the action and it wasn't. now, in terms of how the stock works specifically, apple's long-term holders and mutual fund managers want to see new product, particularly ones that don't cannibalize old products. it's like a donner party out there tonight. we care about the number of smartphones they sold. this quarter was 47.8 million iphones. another reason for today's selloff. i heard whispers of 50 million, didn't get that. not enough demand, not enough parts, what really gives? oh, more questions, thanks, that's just what i need. second, you have lots of people who bought apple when it was the undisputed king of smartphones. samsung, got that great operating system, android, google. it's good enough so customers don't have to pay up for the iphone and the big phone companies are happy to steer customers there because they make more money selling samsung than apple. people who bought apple because of the chart. it was a stock that kept going higher, so the analysts kept raising targets, numbers. but once the stock started going down, the charts became the enemy.
11:07pm
a virtuous circle became a vicious cycle down, chart became your enemy and that means the same people who had raised their price targets on the way up are now busy cutting them on the way down. and there'll be many, many more heard from tomorrow morning. sellers have been taking profits or losses, frankly, if they bought it too high either because they're trying to follow the discipline of not turning a gain into a loss, that's what i did for my charitable trust, follow along. we cut our position in half so we could play with the house's money. still stings, though, but you might have been a seller at the end of last year. you also have sellers, because you bought it at $700. you also have sellers worn down by the action, which has been hideous as it was beautiful on the way up. disgruntled because of missteps like apple maps, change in itunes, second quarter for the new iphone. the itunes will be gotten used to if you don't like it. a tiny inconvenience for carrying around two hewlett-packard cords. and there are sellers who don't care that the stock is cheap. it means nothing to them.
11:08pm
they just wanted the momentum. apple no longer has any momentum. one thing is for certain, neither you nor anyone else wants to hear that apple is fine, inexpensive after the quarter. shrug your shoulders, it has huge flexibility to do something big. things will work out fine. this stock is way too emotional and people want to ride the netflix wave. they want to climb aboard amazon, get in the linkedin rocket ship before it's too late. to me, you have to resist the so-called statement buy. i'm going to buy apple. i've got to short it here. because, alas, without steve jobs, apple, as i've been saying @jimcramer on twitter, i said this is not a stock using traditional metrics, it's not magical anymore like a netflix, linkedin or amazon that are not bound by the gravity of the earth. that's okay. it just isn't -- just because it isn't magical doesn't mean it's automatically a loser. especially considering how cheap
11:09pm
the stock has become after its shellacking. there's not as much to write home about here. including no more omg products, it isn't going to get the love it needs to go back to where it was. so bemoan, be upset i'm not pounding the table or demanding that you sell, except the fact that apple's a decent stock the way ibm or johnson & johnson might be, maybe not as good. maybe not as good as those. it's more like how intel and microsoft used to be after they peaked. does look like many of the different product lines have peaked or slowed too. recognize it has weapons at its disposal. it can make a better story, but right now the weapons are stuck in the arsenal. which is part of the disappointment. here's the bottom line, most of all, i want you to try to just forget about apple. the stock has become the veritable eclipse you can't stop looking at, and before long, your retinas burned out and you can't see anything worth seeing. don't let this one super emotional story blind you to all of the other opportunities out there, opportunities that would be obvious if you spend less time thinking about apple and
11:10pm
more time thinking about everything else. i know that's what i want to do after this basically in line to slightly weaker quarter. there wasn't anything to stop all this shouting about. i think you should stop listening to it too. let's go to joe in massachusetts. joe? >> caller: boo-yah, jim. >> boo-yah, joe. >> caller: i've got a question for you. they started off a little weak. i don't know if they are going to be a flash in the pan or should i jump ship and try something different? >> you know, i would jump ship. i didn't like what i heard, and i think you got lucky the stock isn't down. i think you should just ca-ching ca-ching and move on. patrick in new jersey. patrick? >> caller: hey, hello, mr. cramer. >> how are you? >> caller: good. big bon jovi boo-yah for you. >> love bon jovi. >> caller: this is the town he grew up in, formed his band. >> love it. >> caller: with mortgage rates at all-time lows, and new applications rising, hurricane sandy hitting the east coast and home building about to rise
11:11pm
again. >> mm-hmm. >> caller: i own a stock for less than a year and made good money off it, but there's questions about their cash flow. i was wondering if it's a good player or should i sell? the stock is called headwaters, hw. >> no, speculative and you hit it out of the park. it's time to -- >> sell, sell, sell! >> you just did real well, let's move on. i've got to tell you, i think once the stock goes up like that and is exactly as you said about it, take the money and run. paul in minnesota. paul? >> caller: hey, jim, how's it going? >> all right. how about you? >> caller: i've got a question about facebook. what do you think about their earnings report next week? is it worth buying more? >> i don't know, the stock has had a big run. i do like facebook, i've liked it since the last conference call. i'm not backing away. it's certainly a lot more exciting than say, apple, it may not be as good as google, but it's fine. it's fine. i think facebook's going to be good. i wish it would go back under $30 where it was the other day,
11:12pm
that might be the opportunity. there's more to this market than one bad apple, okay? that stock may have lost its magic touch, but don't let it blind you from all the other opportunities around here. i was hoping we would get a number that would make it so we wouldn't have to talk about it anymore. i don't know, maybe this was it. "mad money" will be right back. coming up -- animal spirits? pharmaceutical giant pfizer will complete the spinoff of the animal health unit with an ipo next week. is this business the cat's meow, or is the stock setting up to be a real dog? cramer keeps your portfolio out of the pound in this edition of "know your ipo." and later, all aboard. the markets may be making new highs, but if you want your portfolio on the fast track, it takes more than following the leader. tonight, cramer's eyeing up the stocks that could be ready to pull away from the pack, all
11:13pm
coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com, or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.
11:14pm
11:15pm
11:16pm
pfizer, one of my absolute favorite big pharma companies with a fabulous pipeline, 3.6% yield is now in full-on breakup mode, and as regular viewers of this show are quite aware, we can't get enough of these breakups here on "mad money." in fact, the idea of splitting up your company in order to instantly unlock value for shareholders is one of my top ten themes for 2013. here's the flashback. remember that one? the smart companies, they aren't just standing there. they are doing something, doing something to unlock shareholder value. so what exactly is pfizer doing? in an effort to become smaller and leaner, pfizer is spinning off its animal health business
11:17pm
as a separate company called zoetis. the deal is expected to price next thursday, january 31st, and tonight i want to take a moment to help you know your ipo. i think this company -- this newly created could be very attractive and because i need to give you a head start. too often i do these things on the eve of the ipo, you don't have enough time to do the homework. now you've got the whole weekend. put in with your broker on monday. maybe do the work tonight because i want you in zoetis. i'm not telling you to sell pfizer in order to opt into this stock. no, i think pfizer is terrific, you know that. and the spinoff, well, it's only going to make it more terrific-er. the company intends to use the cash they raise to buy back shares shrinking the overall share count, and after the spinoff, pfizer will still be in there, they'll own 80% of zoetis, so if you like what you hear about the animal health story but think this fresh-faced ipo is somehow too risky, you can fall back on pfizer as a safe way to play it.
11:18pm
but if pfizer's still going to own the vast majority of this company, why are they spinning it off in the first place? simple, this is one of those cases where the logic of a breakup can seem like you're creating something from nothing. it's not alchemy, though. they will be separate companies with separate balance sheets, separate managements. zoetis will get the independent valuation from the stock market. that's what we need, some validation. that's why over the last decade we've seen spinoffs in the health care space dramatically outperform the s&p over the next year, two years, five years. that's why i need you to focus on the spinoff. the majority of these spinoffs have done so well. what exactly is zoetis? zoetis makes anti-infective vaccines, anti-parasite medications, as well as medicinal feed additives and other pharmaceutical and nonpharmaceutical products for
11:19pm
the animal health industry. the other 35% come from, you know, horses, dogs -- >> all aboard! >> -- cats. yeah, dogs and cats. and make not mistake, animal health is a huge business according to pfizer. just vaccines and medicines for animals represents a $22 billion market. after the spinoff, zoetis will be the largest manufacturer of animal health products on earth with roughly a 19% market share. and you know what? in many ways designing medicines for animals is actually a better business than coming up with drugs for humans. you don't need to do as many clinical trials, which means your products get to market much more quickly. plus, overall, the animal plus, overall, the animal health research and development process is faster, less expensive, more predictable than the process of developing drugs for humans, which we know can be drawn out forever. but it's not just about avoiding headaches with the fda, also the fact that the animal health care system is different from the human health care system. most animal customers, not the the animal health physical. i'm talking about the way it's paid.
11:20pm
most pay out of pocket so the insurance companies have a lot less leverage over zoetis when it comes to reimbursement. you also have less competition from generic drugs. zoetis plans to move beyond these markets to become a full-service animal health company, one that also offers diagnostics and data management. i don't know if you have any livestock, i have, but those vet bills are big and these animals need drugs and you just pay. because they're animals and you're not going to let something bad happen to them. the zoetis ipo is expected to price next thursday. at that range, the deal could raise anywhere from $1.80, $1.89 to $2.15 billion. and it would value zoetis at $12.5 billion. let's bring a little algebra, i think it could be worth $15 billion, and that's current price range, it would have about 20% upside from where the stock is expected to start trading. don't you want that? zoetis has been a slow and steady grower, about 6% annual earnings growth.
11:21pm
but i'm betting they can accelerate that, take that growth rate up after the spinoff. and that, by the way, has been what has happened to most of these spinoffs from the health care business. my view here, as long as you can get zoetis for less than $26, you need to get in on that deal. remember, though, we don't like to play in the aftermarket even with spinoffs. so if you can't get shares, don't try to snap this one after it starts trading. keep your bat on your shoulder and wait for a pullback. remember barry plastics? it came back, a lot of these ipos have come back and only after they come back do we take our bat off the shoulder and do a swing. if you don't -- it's almost -- pitchers and catchers any minute now. if you don't fancy taking a chance with zoetis, you can buy pfizer right here. that's a bunt. remember, pfizer's going to own 80% of the company and they may distribute the remaining zoetis as a dividend to the shareholders. this makes pfizer an even more attractive breakup story.
11:22pm
under the leadership of ceo ian reid, pfizer sold off the nutrition business to nestle for $9 billion last year. plus, pfizer's been cutting costs, sports that 3.6% yield, has a pretty good pipeline of drugs, including prevention of strokes and atrial fibrulation. i know, pfizer isn't a fast-growing celgene, not an allergan, but it does work. pfizer is spinning off the animal health business next week. i think you should try to get a piece of it. as long as it's $26 a share or less. if this animal health ipo is too risky for your taste, stick with cramer and cramer fave pfizer and you'll do just fine. after the break, i'll try to make you more money. coming up. all aboard? the markets may be making new
11:23pm
highs, but if you want your portfolio on the fast track it takes more than following the leader. tonight, cramer's eyeing up the stocks that could be ready to pull away from the pack.
11:24pm
11:25pm
♪ i've been working on the railroad all the live long day ♪ >> all aboard! >> right now, we have got a roaring bull market in the railroads. even the rails that we've been wary of because they have too
11:26pm
much exposure to the troubled east coast coal markets. >> the house of pain. >> companies like csx and norfolk southern which we kind of gave up for a while are beginning to rally. rallying today big after they both reported upside surprises. last night csx up 87 cents, norfolk southern gaining $1.47. 2.2%. big gains all. meanwhile our fave, kansas city southern, a railroad stock i recommended back on december 5th delivered a completely stellar unbelievable number yesterday. and the stock continued its run today. closing within the striking distance of its high up more than 20% from where i got behind it less than two months ago. how can we isolate the strengths driving the rails? in other words, what's the engine behind this bullish locomotive/ how do we play it? when the railroads are doing well, we know they order more rail cars. just like the farmers order more farm equipment. and sure enough in the fourth quarter, the industry received orders for 11,021 new cars when
11:27pm
the analysts were only expecting 10,000. the rail car industry expects orders for roughly 50,000 units, down slightly from last year. but the cars being ordered are more favorable to the rail car makers. specifically, the big mover here is tank cars. which made up 62% of new orders in the fourth quarter. don't know what a tank car is? remember that fabulous episode of breaking bad from the latest season, where walter white and his crew rob a train in order to get a key ingredient for their thriving crystal meth business? well, in that episode they robbed a tank car. these are basically big tanks on wheels that are used to transport all sorts of liquids, which need to be handled with care. we're focused on crude oil. and that's why the railroads are so desperate for tank cars, it's because they're now shipping so much oil courtesy of all of these major domestic discoveries we talk about all the time in areas that don't have enough pipeline, enough infrastructure to get it to where the
11:28pm
refineries are, like the bakken shale and eagle ford in texas. so the producers like mark papa's eog resources, have to rely on the rails to get the oil where it's wanted. you've got to get approvals from various state governments, epa, sometimes even the state department as we've seen with the endlessly delayed and incredibly controversial keystone pipeline. but the tracks already there, if you want to ship more of the stuff, add more cars, perversely, there's actually much more chance of an oil spill from a derailed train than a pipeline. it doesn't matter because it seems the pipelines are the bane of the president's existence. it's the best method for transporting the crude to market. these days, there are whole trains made up entirely of tank cars, and they can be a mile long. think of these rail cars as another way to play the north american energy renaissance, one of my top ten themes for 2013. on tuesday morning, kansas city
11:29pm
southern told us its crude oil shipping increased. okay, that was last quarter. i know, off a very small base. and they said that twice off a small base. it is worth noting. they're doing a lot of frac too. mostly due to the increase in crude oil traffic coming from the bakken and canadian oil fields. last week when we heard from general electric, they told us the locomotive business was on fire with orders for 100 locomotives up from the year before. not only are we seeing more rail cars, but increase in the number of trains. how do we profit? first of all, you need to know that this is an incredibly cyclical industry. from 2006 to 2009, the rail car biz saw an 89% decline in annual deliveries. that was suffering catfish era. they have been coming back, roaring back with a vengeance. >> buy, buy, buy! >> but industry backlogs are still about 30% below their 2006 peak.
11:30pm
so we've got some room here. however, if the economy falls through the floor again, listen, there's nothing you can do. rail cars get hammered, they are very cyclical. secondly, we know the real bull market is in tank cars, which comprised 70% of the rail car industry backlogs. isn't that amazing? it's huge. even better, tank cars are higher margin propositions. and the long backlog means the pricing for these tanks are going to go higher. there are four main players in the rail car business. trinity, greenbrier, freight car america and american rail car. we don't want just any rail cars, we want tank cars. and the two names with the most exposure are american rail car, which is symbol arii and trinity industries, i used to talk about that a lot in the old days, trn. if you're looking for a way to play the space, these are the two you've got to go with. american rail car is a pure play on this business, one that gets 20% of its sales from tank cars,
11:31pm
i think american rail car is the most leveraged to the bull market and as well as the upside and a 2.8% yield. trinity on the other hand is the broadest supplier out there. it also happens to be a multi-industry company with a lot of exposure to other businesses. trinity makes construction products like cement. that's a good business with housing, make energy equipment like wind towers, no the so good if there's no subsidies. also make inland barges not that good when there's a big drought. rail cars are the biggest part of the equation for trinity, between making the cars and leasing them out. since they drilled down even further, they make up 20% of trinity's sales, about same proportion as american rail car. trinity is turning the windmill factories like the one in newton, iowa, into rail car factories because the rail car market is so much stronger. it's a vicious metaphor for fossil fuels trumping renewables. this is mad money. we're investing in rail cars. so we have a choice here. trinity is best of breed,
11:32pm
american rail car is the pure play. as for the other two rail car makers, let's distance ourselves, i would stay away from freight car america. this company focuses on coal. >> the house of pain. >> sell, sell, sell! >> and as we've heard, the business of shipping coal is still in tough shape, down 18%. no bottom, how about greenbrier. i don't want to reject a bid -- i don't want my stock rejected a bid. the stock is at $17 and change. greenbrier was getting a major lift from the potential icahn investment. made a series of missteps and has a ton of exposure to intermodal rail cars. they're still open to conversations, but not worth the risk. the rails are doing surprisingly well. and that's because they're being used to ship increasing amounts of oil from major new discoveries like the bakken and eagleford shales. and the railroads need tank cars, which are in very high demand. if you're looking to profit from this bull market, and i think you absolutely should, american rail car is the pure play,
11:33pm
trinity is the best of breed. even as only half of its revenues come from making or leasing rail cars, this business is so strong, frankly, both are buys. james in new york, please, james? >> caller: hey, jim cramer, boo-yah from hell's kitchen. calling about gdi, as you i'm sure know the talks fell apart on 12/21, announcing going back into talks with some other previous offers last week. >> right. i wondered if you think this deal will get done. the stock is basically range bound ever since. >> you know what? halliburton and baker hughes are telling you things got better. although, last quarter things weren't that good in north america. i think you hold on to gardner denver. i think -- excuse me, i have a bad nosebleed. hopefully that doesn't happen. i think it's fine. larry in oregon, larry? >> caller: jim. good afternoon from way out west. >> well, how you doing? >> caller: pretty good. even though you took our
11:34pm
football coach, we'll get over it. >> well, you know what? i hope you all share in the bounty there. what's going on? >> caller: follow some of the insider buying stuff and occasionally find something that intrigues me. and carl icahn's done a pretty good job doing this over the years and he's purchased several hundred thousand shares of federal mogul starting in the mid to high teens and continued buying as the stocks dropped. i've seen estimates that the sum of the parts is worth $20 to $30 a share, but i don't know what you think. i thought i stole some when i bought some around $10, it's now $8 selling below book value, has some debt, multi-year lows, just wanted to see what you thought. >> you know something, larry? i am going to go kick the tires on this one myself. why? because i remember the old fmo, the federal mobile from before the asbestos bankruptcy days of reorganization and i've got to take a hard look at federal-mogul, but you've piqued my interest. and we're going to come back and come back with an analysis. and thank you so much, our viewers are so darn smart. molly in florida. molly?
11:35pm
>> caller: hi, jim. this is molly from melbourne. >> how are you? >> caller: hey, good to talk to you. >> i'm headed down there maybe in april. i've got a buddy near the sbi. what's up? >> caller: me too. that's cool. >> yeah. >> caller: i want to thank you for everything you do and the wonderful programs and action alerts. >> thank you. oh, thank you for subscribing. it's a charitable trust. we beat the market. go ahead. >> caller: did better than me. >> thank you. >> caller: i've held some deere stock for about two years now and have -- >> okay. >> caller: small gains and i don't know if i should sell it. do you think there's more upside? >> i do. i think that deere over the next year is going to travel higher because the farmers are flush. and they buy and -- the one thing i will warn you, when deere reports, the stock tends to go down because the company does not tell a good story. but the story happens to be good. you can hold on. you ready to ride the profit train? an energy boom in the u.s. could mean a revival for the rails.
11:36pm
take a look at trinity and american rail car, i think they're both buys. don't move, the "lightning round" is next.
11:37pm
11:38pm
11:39pm
it is time -- it's time for the "lightning round" on cramer's "mad money." rapid-fire calls, you say the name of the stock, i tell you whether to buy or sell. are you ready skee-daddy? start with robin in new york. robin? >> caller: hi, jim, i woke up this morning to your sexy voice on my cnbc alarm clock. >> whoa, smoke show. yeah, what's up? >> caller: i found myself, jim, in the house of pleasure, and i thank you for that. >> well, glad to be there, to share the moment so to speak. >> caller: so to speak. >> i woke up with a bad nosebleed, different things. >> caller: i woke up in a better mood. but here's the question, i'm calling about eog resources. i've had this stock for years at $38 a share, but with papa retiring, uncertain oil prices,
11:40pm
the stock at its high with low dividend and talk of a takeover, do you think the stock could go much higher, or should i cash in and wait to hear your sexy alarm clock wake-up call tomorrow again? >> cut it in half. everything you said is worrisome. now, i happen to believe in mr. papa. you have a good gain. why not sell some and let the rest run? sell some, let the rest run. and then you'll be in terrific shape. let's go to holly in florida. holly? >> caller: boo-yah from land o'lakes florida, what are your thoughts on west star energy? >> i've always liked it. it's sleepy, it's fine, a nice gainer. let's go to matt in delaware. matt? >> caller: boo-yah, skee-daddy. >> yo, yo. >> caller: morgan stanley, what are your thoughts? >> i thought they did a terrific job. i would own 100 shares, buy 50 here, buy 50 at 20. why not all at once? because it just spiked. but i do like it. thought the quarter was good.
11:41pm
mary in new jersey? >> caller: yes, boo-yah, jim. >> boo-yah, mary. >> caller: mary from the state of new jersey. >> love it. >> caller: duke energy. >> duke is an inexpensive stock with a good yield, used to be one of my favorite utilities and i want to buy that stock right here. larry in michigan. larry? >> caller: yes, jim, i watch your show all the time. i love it. you've made me profits. thank you. >> thank you for saying that. thank you. >> caller: my stock is mas. >> it's good. now the stock just spiked but it's been one of my favorites, i also like fortune brands. i want them to merge with each other. i would buy masco here. buy 50 here, room for a pullback. let's go to mark in new york. mark? >> caller: jim, lots of stock market pin action strike boo-yahs to you. >> true. >> caller: me and my 10-year-old son listen and learn together. thanks for all the knowledge. >> that's what i love! that's what i love, thank you. >> caller: your staff is great and -- >> yes, they are. >> caller: stay healthy. >> i'm trying. believe me. what's up?
11:42pm
>> caller: not too long ago, you had the ceo of health care trust on, symbol hta. >> yes. i like that stock. i think that stock should be bought -- >> buy, buy, buy! >> i think hga is terrific. i want you to own the stock. i'm glad you watched that. other people were saying, why is it not at 12? i think it's fine. let's go to tracy in texas. tracy? >> caller: hey, jimmy, thank you so much for taking my call. >> my pleasure, thank you. >> caller: thank you for all your help, your book. i want to say you should be commended. if people would listen to you intently. i want to say thank you, i bought isis at 840. i did wait like you said until the negative news. >> right. >> caller: brought it way down. sold it at $14.37. believe strongly in the company and the pipeline. taking it from here, knowing that there could be or could not be an approval looking at the pipeline. then one other thing i wanted to tell you is you're total entertainment, love flo rida,
11:43pm
i'm a horse trainer and all the girls i teach, every time, we holler banco santander. >> i like that one a lot more than i like yours. i think you did the right thing. let's stay away from isis for now, we can buy it lower, there'll be some disappointment. let's go to dave in pennsylvania. david? >> caller: hi, jim. what's your take on nuance communications? >> oh, the -- oh, man, i've got to tell you, i have -- i have -- i want them to come on and rid me of my bias, because i am biased against that because of -- i've never liked that particular kind of technology. i'm sorry, i just haven't. jill in new york, jill? >> caller: hi, jim, how are you? >> real good, how about you? >> caller: boo-yah. >> boo-yah. >> caller: yes, i'm calling because i was always curious about gnw. i've been watching it for years. >> well, it's gotten its act together.
11:44pm
i do prefer travelers right now. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade. coming up -- how do your stocks stack up in this mystifying market? cramer makes sure your portfolio makes the grade on am i diversified. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.
11:45pm
all on thinkorswim. officemax can help you drive suand down.s down... use your maxperks card and get a 10-ream case of officemax multiuse paper for just
11:46pm
4.99 after maxperks rewards. find thousands of big deals now... at officemax. ♪ [ male announcer ] some day, your life will flash before your eyes. make it worth watching. introducing the 2013 lexus ls. an entirely new pursuit. nothing. are you stealing our daughter's school supplies and taking them to work? no, i was just looking for my stapler and my... this thing. i save money by using fedex ground and buy my own supplies. that's a great idea. i'm going to go... we got clients in today. [ male announcer ] save on ground shipping at fedex office.
11:47pm
it's wednesday home gamers. and you know what that means. it's time to take a quick break from the opining on the insanity of earnings season. and let's focus attention on your portfolios. day in and day out, i stress the importance of homework, of capitalizing on strong secular growth trends, of finding internal catalysts or juicy dividends. well, this market may have a smiling for now and, boy, you know it's been red hot, we know too well, it may not last and
11:48pm
the diversification is the only free lunch. it seems you should put all your chips in netflix. this is where you call me, tell me your top five, i tell you whether it's diversified enough or if you need to tune it up a little bit. how about a tweet first? @foolskarma says, jim, i hope my roth is as diversified as the eagles' offense will be. when i think of the eagles, don't forget, i think about boston college or i think about the group, not a team. anyway, pro team. armor residential, linco, nordic american tankers, what a cold stock that's been, banco santander and vodafone. let's go to work. okay. one of my absolute favorite banks. that's a terrific situation. linco is a dynamite one, it's been red hot, vodafone, nice yielding telco company. nordic american tanker not doing well at all. a shipping company that cut its dividend.
11:49pm
we've got a shipping company, bank, real estate investment, oil and gas and we've got a telco. that is perfection. ♪ hallelujah why don't we take another question from barry from michigan. barry? >> caller: motor city boo-yah to ya, jim. been in the game since 2009. >> okay. >> caller: my holdings are ford motor company. >> all right. >> caller: dana holdings, d.a.n. >> right. >> caller: smith and wesson holdings. >> all right. >> caller: alcoa, and keycorp. >> all right, we've got a little actionalertplus.com bank stock there in keycorp., a midwestern powerhouse. smith and wesson, guns. dana auto parts, alcoa, mineral company and ford also motor city play. we could argue, yes, as a matter
11:50pm
of fact we are going to argue. you're going to have to sell ford and you're going to go buy -- no, sell dana and buy pfizer. get an auto company, gun company -- gun company, mineral company and auto company, a bank and then you'll have a drug company, and then you will be -- ♪ hallelujah >> -- diversified. let's go to keith in new mexico. keith? >> caller: new mexico green chile boo-yahs to ya. >> i'm going to give you a breaking bad boo-yah right back at you. >> caller: am i diversified? here's my five stocks. my first one is cbi, chicago bridge and iron. second one is etn, eaton corp. third one is hfc, holly frontier. >> yes. >> caller: number four is pag, penske automotive, and number
11:51pm
five, i'm a little iffy on, but i own it, it is wtrt west port innovations. >> i like this portfolio so much. one of the reasons i like it so much is westport's a good spec. the others chicago bridge and iron, stephanie link of actions alert plus, we talk about the need for an infrastructure play. that's one of the best. westport is natural gas. it is iffy. eaton, i'm going to distinguish eaton which has a small truck business, used to be much larger part of eaton. i'm going to call it a conglomerate. penske is auto and holly frontier is refining. you know, this -- i'm allowing westport to be in with eaton because westport is a spec. so we have auto, truck, spec, we have infra, and refining. ♪ hallelujah >> "mad money's" back after the break. [ engine revving ]
11:52pm
♪ [ male announcer ] every car we build must make adrenaline pump and pulses quicken. ♪ to help you not just to stay alive... but feel alive. the new c class is no exception. it's a mercedes-benz through and through. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services.  try running four.ning a restaurant is hard, fortunately we've got ink.
11:53pm
it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase.  it'but sleep train's huge foryeais ending soon.models for a short time, save hundreds on tempur-pedic mattresses. get the most highly-recommended bed in america at closeout prices. plus, get interest-free financing and free same-day delivery. why wait for the new models? sleep train's year end clearance is ending soon. superior service, best selection, lowest price, guaranteed. ♪ sleep train ♪ your ticket to a better night's sleep ♪
11:54pm
sometimes a big class that gets the final on the same day. that's how i felt with this parade of earnings yesterday. started with dupont, dupont performed much better than last time. it's like the dogs stopped eating the ceo's homework. there were no high fives. you could tell from the call she was still furious at herself from the last quarter's miserable effort. when a "d" student gets a "c," it's a big deal.
11:55pm
and my charitable trust will continue to own the stock for now. meanwhile, jay fishman, the ceo of travelers and the best insurance executive in the world bar none, quietly delivers a sumo on the quarter. and this guy did make you feel like he predicted hurricane sandy. i'm not kidding. go have a listen and a tremendous job investing in your premiums in conservative, but smart ways, makes you want to switch away from the talking pig, the woman in white, the discount cheese and president palmer all in one conference call. remarkable. i found myself thinking, holy cow, am i glad i'm not in that class? i'd have a lot of explaining to do to my dad about how i couldn't keep up with jay fishman and he would make me spend less time hanging out with my hoodlum friends. then there was ibm after the close. were we so darn fixated with that top line? but ibm knows you can get terrific grades by saying no to bad sales and yes to good sales. ibm makes as much money as it
11:56pm
did, not thanks to alchemy, but also because it makes a huge amount of profit on each sale, particularly software. what a remarkable quarter. pure deans list and a nice surprise, perhaps the company just didn't feel well on the last quarterly exam, should've gotten a note to the testing agency from its mommy that ibm was under the weather. how about google? sends shareholders down a chute with a shocking amateur and stunning midday release of what's supposed to be an end of day release on a disappointing quarter. and boy, it was like a defenseless hit to the blindside. i'm not kidding. just a defenseless hit, just a nasty one. and there were all sorts of flags being thrown, suspense, maybe talk about a suspension by the stock commissioner. this quarter was a redemption song and a complete reinstatement of greatness with terrific growth and now products that are stealing the limelight from about everyone including apple. there was no defensiveness, just optimism. they'd throw a flag for excessive celebration. how could you not feel
11:57pm
fantastic, though? when they talk about how people now carry a supercomputer in their pocket all the time and that google's treating this era like the birth of the personal computer era, arming that pocket supercomputer with everything you need from self parking, airline and restaurant reservations and the cheapest and best places all in the same device. plus, just in case you had worries about whether these joyous rocket scientists didn't care enough about the financial grades often mentioned, they sprung this classic line on you after discussing the questionable motorola acquisition. and i quote, just to remind everybody, we do care about profitability, end quote. take that you nitpicking teachers. google will put a man on the sun once they solve the heat problem. all in all, yesterday was a terrific day to take the earnings exam with the worst getting better, the nerd insurance guy just killing it. as the nerds always do, stick with cramer.
11:58pm
11:59pm
♪ let's go. ♪ ♪ ♪ [ male announcer ] introducing the all-new cadillac xts... another big night on the town, eh? ...and the return of life lived large. ♪ there. i said it. they don't have pictures of my kids. they don't have my yoga mat. and still, i feel at home. could it be the flat screen tv? the not so mini fridge? ♪ the different free dinner almost every weeknight?

Terms of Use (10 Mar 2001)